Maruti Suzuki Receives ₹5,786 Crore Draft Income Tax Order, Dept Proposes Disallowances and Additions [Read Order]

Maruti Suzuki India Ltd., the country’s largest carmaker, has disclosed that it has received a draft assessment order from the Income Tax Department amounting to ₹5,786.4 crore for the financial year 2022-23.

According to the filing, the draft order proposes additions and disallowances totaling ₹5,7864 crore with respect to the company’s reported income. Maruti Suzuki emphasized that such orders are not unusual and often arise due to differences in the interpretation of tax provisions.

Also read: Patna HC Rejects Income Tax Appeals After 8-Month Delay Blamed on Lawyer’s Illness and Procedural Oversight [Read Order]

Senior Executive Officer (Corporate Affairs) Rahul Bharti noted that the order is of a routine nature, underscoring that similar disputes have occurred in the past and are typically resolved through established legal channels. He stated that “The draft income tax assessment order about which the company has intimated the stock exchanges is of a routine nature. Such orders arise from time to time, largely on account of interpretation issues."

Maruti Suzuki, which dominates India’s passenger vehicle market, continues to focus on expanding its product portfolio and strengthening its position in both domestic and export markets. The tax demand, while substantial, is expected to be addressed through due process without immediate impact on its business trajectory.

The company has received a Draft Assessment Order for FY 2022-23 wherein certain additions/disallowances amounting to 257,864 million with respect to returned income has been proposed," the carmaker said in a BSE filing.

The matter now rests with the Dispute Resolution Panel, where Maruti Suzuki will file its objections in the coming weeks. The outcome will determine whether the draft order is upheld, modified, or set aside.

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